6/15/17

Nike Cutting Jobs, Reducing Production Of Some Products

There might be fewer styles of sneakers, sweatpants, and other Nike apparel to choose from next time you go shopping, as the athletic company makes plans to cut back on its workforce and product lines.

CNBC reports that Nike will cut about 1,400 jobs, or 2% of its workforce globally, under its new business structure.

Under the new business plan, the company says it will work to reduce the number of sneaker and clothing styles it produces by a quarter.

Instead, Nike will focus on products that are selling well at the time and core brands such as ZoomX, Air VaporMax, and Nike React, CNBC notes.

The company referred to the new strategy as a “Consumer Direct Offense,” that aims to get more customizable products to shoppers more quickly.

To do this, Nike will focus on 12 cities in 10 countries, where it expects to realized about 80% of its project growth through the end of the decade.

“Through the Consumer Direct Offense, we’re getting even more aggressive in the digital marketplace, targeting key markets and delivering product faster than ever,” Nike CEO Mark Parker said in a statement.

The retailer says it also plans to expand its app to more countries, allowing potential customers additional avenues to purchase products.